Woongjin: Profits Rebound Sharply While Shares Fall 57.2% Over One Year

Thesis

The data supports a clear earnings recovery: operating income rose from ₩22.4B in 2023 to ₩146.7B over the trailing twelve months to H1 2026, and net income turned from losses to ₩131.9B. The market has not rewarded this, with the shares down 10.5% in one month, 23.1% in three months and 57.2% in one year, and trading at 1.0x earnings and 0.7x book value.

The data does not explain the gap between profit and price. A very high ROE of 104.7% reflects a thin equity base rather than only strong earnings, and the filings list shows a subsidiary bankruptcy declaration on 2026-06-19. No news headlines are available in the data to clarify the sell-off.

Business overview

Woongjin is a KOSPI-listed holding company, founded in 1983 and listed since 1994, led by co-CEOs 윤새봄 and 이수영. It has 79,927,080 listed shares and a market value of about ₩131.5B. Revenue was ₩1.28T over the trailing twelve months, up from ₩1.01T in 2024 and ₩980B in 2021. The data does not break down business lines or subsidiaries.

Financial analysis

These figures come from filed financial statements. Revenue grew 14.1% in 2025 to ₩1.15T after two years of slight declines. Operating margin rose from 2.2% in 2023 and 3.1% in 2024 to 6.8% in 2025 and 11.4% over the trailing twelve months. Net income was ₩120.8B in 2025 against a loss of ₩5.2B in 2024, and ₩131.9B trailing (10.3% margin).

The balance sheet is stretched. Borrowings are ₩775.8B against cash of ₩171.0B, and liabilities to equity is 1,504.1%. Trailing free cash flow is positive at ₩314.6B. Enterprise value is ₩290.1B. Dividend yield is 0.0%.

Valuation

The stock trades at a P/E of 1.0, P/B of 0.7 and P/S of 0.1. At the end of 2025 P/E was 1.5 and P/B 1.1; in 2022 and 2021 P/E was 11.5 and 5.9. Listed peers show P/E of 3.1 to 8.6 and P/B of 0.7 to 1.9 (SK Square 3.1 and 1.9, SK 4.2 and 0.9, KB Financial 8.6 and 0.9, Shinhan 7.7 and 0.7, Hana 7.7 and 0.7), so Woongjin's earnings multiple is below all of them.

The discounted cash flow model gives a model estimate based on the assumptions shown of ₩12,917 per share in the base case, ₩3,308 in the bear case and ₩33,076 in the bull case, using a 5.6% rate on trailing figures to H1 2026. All three exceed the ₩1,645 price, but the very wide range shows how sensitive the estimate is to its assumptions. It is not a target or a reason to buy or sell.

Catalysts

• The half-year report filed on 2026-08-14 showed trailing profit well above earlier years, and later reports will show whether this holds.
• Two 5%+ holding reports were filed on 2026-07-10 and 2026-08-10, signalling changes in major shareholdings.
• The 2026-06-19 subsidiary bankruptcy declaration and the 2026-06-15 major management matter filing may have further effects as details emerge.
• Retail investors bought about ₩278M net over 20 days while foreigners and institutions were net sellers, so a change in flows could matter.

Risks

• Liabilities are 1,504.1% of equity and borrowings of ₩775.8B far exceed cash of ₩171.0B.
• The share price is 63.6% below its 52-week high of ₩4,520 and near the low of ₩1,509, showing strong negative momentum.
• A subsidiary filed a bankruptcy declaration in June 2026, and the data gives no detail on its financial impact.
• Foreign ownership fell from 6.4% to 5.8% in 60 days, and foreigners and institutions were net sellers over 20 days.
• Earnings were negative or weak in 2023 and 2024, so the recent rebound has a short track record, and the dividend yield is 0.0%.

Closing view

The filings show a real improvement in revenue, margins and cash flow, and the multiples are low against both the company's own history and peers. Against that, leverage is extreme, a subsidiary has declared bankruptcy, and the market has pushed the price down sharply, for reasons the data does not explain. The model estimate is far above the price but carries a very wide range. The evidence is mixed and calls for close attention to upcoming filings rather than any firm conclusion.

Model estimate of fair value

Bear

₩3,308

+107%

Base

₩12,917

+709%

Bull

₩33,076

+1971%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 5.6%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

• Transactions of Goods and Services with Affiliated Companies Held by the Same PersonSep 30, 2026
• Disclosure on Large Business Group Status [Quarterly Disclosure (For Representative Company)]Aug 27, 2026
• Half-year report (Jun 2026)Aug 14, 2026
• Matters Concerning Payment Amounts by Payment Method and Payment Period, and Dispute Mediation BodiesAug 14, 2026
• 5%+ holding reportAug 10, 2026
• [Amended] Large Business Group Status Disclosure [Annual Disclosure and Q1 Use (Representative Company)]Jul 23, 2026
• 5%+ holding reportJul 10, 2026
• Transactions of Goods and Services with Affiliated Companies Held by the Same PersonJun 30, 2026
• Bankruptcy Declaration (Material Management Matter of Subsidiary)Jun 19, 2026
• Major management matter relevant to investorsJun 15, 2026
• Disclosure of Corporate Governance ReportJun 1, 2026
• [Amended] Large Business Group Status Disclosure [Annual Disclosure and Q1 Use (Representative Company)]Jun 1, 2026
• Daily prices up to 2026-10-23
• Financial statements, trailing 12 months as of H1 2026
• Our fair value model, statements as of TTM to H1 2026

Report history

1. Oct 24, 2026InitiationStart of coverage (reader request)Woongjin: Profits Rebound Sharply While Shares Fall 57.2% Over One Year